The 2014 reporting suite

As part of our commitment to relevant and transparent reporting, African Rainbow Minerals Limited (ARM or the Company) has produced its fifth Integrated Annual Report.

This report is supplemented by the comprehensive and detailed Sustainability Report and the Mineral Resources and Reserves Report. Options to download separate sections of the integrated report are available in the download manager  .


The report is aimed at providing all our stakeholders with a thorough review of ARM’s performance against its strategy and its financial, operational and sustainability objectives.

The 2014 Integrated Annual Report covers the period 1 July 2013 to 30 June 2014 and provides an overview of and discusses the performance of our joint venture operations located in South Africa and Zambia. Our sustainability objectives and performance are reported only for those operations where ARM has direct or joint management and therefore does not include the ARM Coal and Harmony operations.

This report is aimed at all ARM’s stakeholders who amongst others include shareholders, potential investors, employees, communities surrounding our mining operations, customers, suppliers, the governments of the countries we operate in and the regulators that govern the mining industry. Our integrated approach to reporting aims to assist these stakeholders understand our business better and provide them with the information necessary to properly assess our Company’s performance, prospects, value and strategic intent.

This report is guided by the International Integrated Reporting <IR> Framework as issued by the International Integrated Reporting Council (IIRC). This framework seeks to create the link between the business’ use of and impact on the various forms of capitals and the Company’s material issues and strategy.

We have responded to the relevant statutory frameworks in preparing this report. These include but are not limited to, the Companies Act 71 of 2008 (as amended), the King Report on Corporate Governance for South Africa 2009 and the King Code of Governance Principles (collectively, King III), the JSE Listings Requirements, as well as all legislation, regulations and codes of practice applicable to the South African mining sector and the countries in which we operate. A comprehensive checklist detailing our application of the King III principles is included on our website.

The financial information has been prepared according to International Financial Reporting Standards (IFRS). See the unqualified opinion of the independent auditors on the financial information. The presentation of the consolidated and separate annual financial statements for F2013 and F2014 was affected by the adoption of IFRS 11 which became effective for ARM on 1 July 2013. This change in accounting policy had a significant impact on the presentation of the consolidated annual financial statements and as a result comparison to the annual consolidated financial information prior to F2013 will be distorted.

Printed copies of the Sustainability Report are available on request from the Investor Relations Department. The contact details for the Investor Relations Department are provided on the inside back cover of this Integrated Annual Report. The non-financial information included in the report has been assured by an external assurance provider to ensure reliability of the information published. The opinion of the external assurer may be found in our detailed Sustainability Report. All monetary values in this report are given in South African Rands unless otherwise stated. Rounding of figures may result in computational discrepancies on management and operational review tabulations.

In the interest of continuous improvement and fulfilling the information and engagement needs of our stakeholders, we welcome any feedback on the content and format of our reports. Please direct any feedback to the Investor Relations Department.

Statement of the Board of Directors (the Board) of African Rainbow Minerals Limited

The Board acknowledges its responsibility to ensure the integrity of the Integrated Annual Report. In the Board’s opinion the 2014 Integrated Annual Report addresses all material issues and presents fairly the Company’s integrated performance. The Board approved the financial and non-financial information contained in this report on 14 October 2014.

Salient features

“ARM achieved record headline earnings in F2014 and declared an increased dividend of 600 cents per share. Excellent performances from Nkomati and Two Rivers mines as nickel and PGM’s contribution to headline earnings increased significantly.”

Patrice Motsepe, ARM Executive Chairman

  • Headline earnings per share increased from 1 735 cents per share to 1 900 cents per share.

    Increased dividend declared of 600 cents per share.

    Costs were well controlled at the Nkomati, Dwarsrivier and Two Rivers mines.

    Lubambe Copper Mine produced 23 791 tonnes copper as it continued its ramp-up.

    Sakura Ferroalloys Project began construction; R790 million has been spent to date.

    The Lost Time Injury Frequency Rate (LTIFR) was reduced from 0.48 (per 200 000 man-hours) to 0.37 in F2014.

  • Khumani, Black Rock and Dwarsrivier mines each completed more than two million fatality-free shifts.

    Continued improvement in the implementation of HIV & Aids and Tuberculosis (TB) management programmes.

    Overall employment equity performance is ahead of 2014 Mining Charter targets.

    Total Corporate Social Responsibility (CSR) expenditure increased to R283 million.


The Group’s activities are guided by the principles of responsible investment, broad social benefit and good corporate governance. These principles drive our
efforts to manage the potential negative environmental
and social impacts of our operations proactively and responsibly, and to contribute to the development
of the communities around us.